While such situations may not seem like the best, allowing takeover of lease may sometimes result in a win-win for both the landlord and tenant especially in genuine situations whereby the tenant is no longer able to keep up with the monthly rents due to fall in business revenues due to market sentiments.
Landlord Continues to Receive Monthly Rental
Rather than not being able to receive regular monthly rents on time, a landlord could consider allowing the tenant to move out provided a new replacement tenant is found by the tenant or appointed real estate broker. If the idea of takeover and the new tenant’s profile is acceptable to the landlord, the landlord may continue to receive monthly rental payments rather than having a tenant which is no longer able to keep up with the monthly rents. After all, a paying tenant is better than a non-paying tenant.
Outgoing Tenant May Move Out Once New Tenant is Found
In case of a takeover of lease where the landlord is agreeable with the terms, once a new tenant is found by the tenant or the appointed real estate broker and if the new tenant’s profile is acceptable to the landlord, the outgoing tenant will be able to move out of the premises without having to continue to keep up with the rents especially if the tenant is no longer prompt in terms of monthly rental payments.
Landlord May Even Consider Fresh New Long Term Lease
In some cases, a fresh new long term lease may even be signed if a new tenant is found by the outgoing tenant or the appointed real estate broker. This situation may be better as there is long term continuity without having to source for a new tenant again so soon.
New & Outgoing Tenant May Benefit from Fittings Left Behind
For some takeover cases, the incoming tenant may also benefit from the fittings left behind by the outgoing tenant. This can mean less renovation or fitting out works to be done or less time required to fit out the premises. As for the outgoing tenant, it can mean less reinstatement works to be done or less time required for reinstatement. This may also mean cost savings for both the new and outgoing tenant resulting in a win-win situation.